A plastics company is to expand and create new jobs after a £500,000 investment made possible with a grant from The Journal’s Let’s Grow fund.

Newton Aycliffe-based Formula Plastics is investing in two injection moulding machines which will increase the overall capacity of its factory and increase the range and type of products it can manufacture.

The investment package includes a grant of £94,500 from the Let’s Grow Fund, which is operated by business services company BE Group and accountancy firm UNW LLP in association with The Journal to distribute money from the Government’s Regional Growth Fund.

The project will kick start the company’s three-year growth plan, which aims to almost double turnover and should create or safeguard 10 jobs at the factory.

Managing director James Goodliffe said: “This is a fantastic start for our growth plans at Formula. With this investment we can add another dimension to the service we can offer customers.

“Let’s Grow funding has been an essential part of the project; without it, the project simply would not have gone ahead. It has enabled us to invest in the most modern plant and equipment and ensure that we remain competitive for years to come.”

Andrew Frost, Let’s Grow Project Advisor at BE Group said: “We’re very pleased to be supporting Formula Plastics to invest in new additional plant and equipment. The Let’s Grow grant is helping to de-risk what is a significant investment of over £500,000 and is fundamental to the company’s decision to continue to expand its operations in the automotive supply chain.”

The new equipment will be installed in September and there will be at least seven new posts created.

As well as increasing output and employment, health, safety and environmental factors were considered when selecting the equipment, resulting in the choice of machines that will use 50% less energy than standard.

Mr Goodliffe added: “There has been an increase in demand for moulded products both regionally and nationally, and Formula is positioning itself as a strong contender to take on additional business both within and outside the automotive sector.

“We have always had a reputation for quality, and now we have internationally recognised accreditation as well as our new machinery, we’re able to deliver even more products to this high standard.”

When they are in place in the autumn, the new machines will begin production on new contracts, including manufacturing moulded parts for the Nissan Leaf.